SEC Publishes in Federal Register Proposal to Require Broker-Dealers to Calculate Cash Custody Daily

The SEC published in the Federal Register proposed amendments to SEA Rule 15c3-3 (the customer protection rule) that would require broker-dealers to perform their cash reserve account calculations daily and top up their reserve accounts balances. Comments are due by September 11, 2023.

As previously covered, the SEC proposed amending the customer protection rule to provide that a carrying broker-dealer with average total credits equal to or more than $250 million must make the required computations and deposits "daily as of the close of the previous business day." The proposal rule would also stipulate that the required deposit must be made "no later than one hour after the opening of banking business on the second following business day." Should a broker-dealer’s total credits fall below the $250 million threshold, the SEC proposed that the broker-dealer provide written notification to its examining authority of its intent to perform weekly computation.